My biggest problem with AMC is more about the market for "In Theater" experience. I feel it's going to continue to fall off as a form of entertainment. Even after pandemic. I know i have not been to a movie theater for years. I watched around town as Theaters "Moyer for example" shuttered doors and all of them have moved to Malls which are also shuttering doors because nobody wants to go to malls anymore. Of course now what they want to do is continue to move online which is totally saturated at this point but it's the only way to go.
This might be a "Brilliant" move but it's still rather short term.
Like all things in investments- I certainly could be wrong but AMC has $5.4 billion in long-term debt and owes $4.9 billion per year in theater rent. Even in its heyday, the company operated at razor-thin margins. Now its balance sheet looks even worse as liabilities outpace its assets by over $2 billion. For these reasons, it's probably a good time to take profits on the stock
